The Maison Capitol, a newly constructed residential building in Bern's Old Town, has experienced a significant tenant turnover since its completion in 2022. Eighteen of its 26 apartments have seen new occupants, leading to questions about initial pricing and building quality. Management has now adjusted rental prices downward by about 5% for newly available units.
Key Takeaways
- 18 out of 26 apartments at Maison Capitol have had tenant changes since 2022.
- Former and current residents reported issues like cold water and faulty building access.
- Rental prices for new listings have decreased by approximately 5%.
- The Bern Old Town rental market shows signs of slowing demand.
High Turnover at Maison Capitol
The Maison Capitol, located between Kramgasse and Rathausgasse, was completed in 2022. It received an award from the Bernese Building Culture Foundation. Despite this recognition, the building has faced challenges with tenant retention. Out of 26 apartments, 18 have experienced a change in tenants over three years.
HIG Immobilien Anlage Stiftung, the owner, confirmed the high turnover. They manage the property with Bern-based von Graffenried Liegenschaften. While acknowledging the fluctuation is "rather above average," they state it is "not unusual" for a centrally located new building attracting a mobile clientele.
"The market has changed. The supply of comparable apartments in the Old Town is larger, and demand is currently more reserved."
HIG Immobilien Anlage Stiftung and von Graffenried Liegenschaften
Tenant Complaints and Building Issues
The owner and management attribute tenant changes to typical reasons, such as job relocation or personal circumstances. They claim building defects did not play a significant role. However, several current and former residents tell a different story.
These residents reported numerous "teething problems." Examples include multiple instances of only cold water on weekends, stairwell lights not working for weeks, and a non-functional main entrance door for months. Residents also expressed frustration with slow responses from property management.
Building Facts
- Location: Bern Old Town, between Kramgasse and Rathausgasse
- Completion: 2022
- Number of Apartments: 26
- Tenant Turnover: 18 apartments in 3 years
The property owner and management state that necessary repairs were "within the usual scope." They claim that defects were addressed and resolved "promptly." They also mentioned initial issues with the pellet heating system, which caused a hot water interruption.
Rental Price Adjustments
Recently, new listings for apartments in Maison Capitol show a price reduction of about 5%. For a 2.5-room apartment, this means a monthly saving of over 100 Swiss francs from an original price of approximately 2400 francs. A 4.5-room maisonette, initially costing 4400 francs per month, now costs over 200 francs less.
This price adjustment raises questions about the initial rental strategy. Was the initial pricing too high for the market, or is the Bern Old Town rental market experiencing a shift?
Bernese Rental Market Trends
Data from real estate consulting firm Wüest Partner supports the idea of a changing market. In the first half of 2025, more apartments were advertised in Bern's city center compared to previous years. Rents in the higher-end segment have remained stable for some time.
Across the entire city, advertised rents for expensive apartments slightly decreased in 2025. The number of search subscriptions for rental apartments has also steadily declined this year, suggesting a less overheated urban housing market compared to the previous year.
According to Robert Weinert, Head of Research at Wüest Partner, there is a "slowdown in advertised rent increases or stagnation" in Switzerland, Bern, and Bern's Old Town. He attributes this to several factors.
Firstly, the demand for additional housing has slightly decreased compared to 2024. Secondly, new construction activity has "somewhat increased." Additionally, this year's two reductions in the reference interest rate, while primarily affecting existing rents, also influence advertised rents.
Rent Reduction Requests and Legal Standing
Some current residents at Maison Capitol requested rent reductions, arguing that new tenants were paying less. They cited the principle of local and neighborhood-appropriate rents to avoid unequal treatment. However, these requests were not approved.
The owner and management stated that the requests "could not be granted." They explained that the applications did not meet legal requirements for a rent reduction because they did not refer to the reference interest rate, cost development, or inflation.
HIG and von Graffenried also noted that they do not increase rents for existing tenants even if higher prices are possible for new leases. Sabina Meier, CEO of the Bern Tenants' Association, confirmed the legal aspect.
Meier states, "There is no right to a rent reduction if comparable apartments in a property are advertised at a lower price." However, she added that significant price reductions could raise questions about whether the original rents were set according to legal limits, which allow a maximum return of 3.25%.
The owner and management maintain that initial rents were calculated "according to legal requirements." They argue that lower current re-rental prices do not mean the original returns were excessive. Instead, it indicates that demand for such properties is lower today.
For at least one tenant, the financial aspect was not the only concern. A resident, who has since terminated her lease with her partner, expressed feeling "morally cheated" rather than focusing solely on the money.